Recently signed up to a broker, wanted your thoughts...

Enivid

Administrator
Staff member
Nov 30, 2008
16,443
903
144
Odessa
www.earnforex.com
So if my broker is based overseas, wouldn't that automatically make the chances of them being regulated by the ISA minimal? Does that limit me to Israeli companies?

Yes, if that broker is offshore it is very unlikely that it is regulated by the ISA. You can open account with an unregulated non-Israeli based company, but your chances of getting any sort of customer protection/compensation in case of some problem would be gone.

You can still, however, open an account with some well-regulated foreign broker. For example, a company based in the United Kingdom - lots of brokers there and their regulation is pretty good.
 

Enivid

Administrator
Staff member
Nov 30, 2008
16,443
903
144
Odessa
www.earnforex.com
FCA regulation gives traders certainty that the broker is properly capitalized (think negative balance protection), operates with in clients' best interests (e.g. no misleading bullshit), and its management has necessary qualification (they are less likely to let the technical errors proliferate, for example).
 

jellyeb

Active Trader
Jun 10, 2015
248
11
29
FCA regulation gives traders certainty that the broker is properly capitalized (think negative balance protection), operates with in clients' best interests (e.g. no misleading bullshit), and its management has necessary qualification (they are less likely to let the technical errors proliferate, for example).
Thanks for elaborating on this. Regarding negative balance protection - do FCA regulated brokers offer this feature? I guess brokers compensate for losses which exceed a clients deposit at their sole discretion cuz its possible situation that there is no liquidity in the market and price goes against you driving your balance into negative zone. It's your losses and you are assumed to bear them.
 

Enivid

Administrator
Staff member
Nov 30, 2008
16,443
903
144
Odessa
www.earnforex.com
Thanks for elaborating on this. Regarding negative balance protection - do FCA regulated brokers offer this feature? I guess brokers compensate for losses which exceed a clients deposit at their sole discretion cuz its possible situation that there is no liquidity in the market and price goes against you driving your balance into negative zone. It's your losses and you are assumed to bear them.

After looking at this more thoroughly, I must conclude that FCA does not yet require brokers to provide negative balance protection. However, most of the FCA-regulated brokers do provide such protection. Anyway, the new ESMA Forex rules include a mandatory negative balance protection and FCA will likely adopt them too.
 

bahi

Newbie
Feb 17, 2018
21
0
2
41
Is there a way to check if your broker is in the process of acquiring regulation? I believe that's what my broker at Kaya told me when I signed up.
 

bahi

Newbie
Feb 17, 2018
21
0
2
41
When I read about things liked regulation, it makes me think twice about my investment with Kaya because I've read here that they're not regulated. But on the other hand, I am pretty satisfied with them and I don't want to stop while the going is good.
 

Enivid

Administrator
Staff member
Nov 30, 2008
16,443
903
144
Odessa
www.earnforex.com
Is there a way to check if your broker is in the process of acquiring regulation? I believe that's what my broker at Kaya told me when I signed up.

No. Besides, there is little meaning in being "in the process of acquiring regulation." Even if they are "in the process", they are still unregulated.
 

bahi

Newbie
Feb 17, 2018
21
0
2
41
So based on this thread, it looks like my options are to either (a) invest in a local company, or (b) continue with Kaya until I sense something wrong. I think I'm going with (b) for now as I hate the service I get from local companies. It's downright awful!

Plus, it seems that if I want binary or cryptocurrency trading, regulated companies are out of the question, unless I'm missing something? Those are both things that at least Kaya provides.

And all this talk about negative balance protection not being mandatory with regulation, I'm not really sure what's to drive me to switch brokers?
 
Last edited by a moderator:

bahi

Newbie
Feb 17, 2018
21
0
2
41
Hi Enivid, thanks for the reply. If I'm an investor from abroad am I still protected by the regulation? Any links you can set me up with? Or am I no better (in terms of regulatory protection) than if I stick with Kaya.
 

bahi

Newbie
Feb 17, 2018
21
0
2
41
Enivid, your posts continue to enlighten. Given me a lot of food for though regarding FX and binary investment trading. Follow up question, any regulation regarding crypto currency trading that sites like Kaya offer?

Btw, I'm glad that this thread has been a civilized exchange of information about regulation. Not just some thread filled with knee-jerk posting claiming that Kaya is a scam.

I understand completely if a customer has invested and not received their withdrawal, and I could get the upset that comes with it. But it's just depressing to read as a current customer who has been able to withdraw funds once. I always feel like my voice is drowned out.
 
Last edited by a moderator: